Question: Cornwall Mobile Detailing (CMD) is a service
Cornwall Mobile Detailing (CMD) is a service that washes and details a customer’s vehicle at their home or office. It operates on a membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter months. The number of members also varies with the season. The number of members and the average number of additional washes by members for the months of interest follow:
Cornwall allows members to pay for dues on credit. Cornwall’s experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional washes are payable in cash.
Required
What are Cornwall Mobile Detailing’s expected cash receipts for March, April, May, and June?
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> Accounting is objective and precise. Therefore, performance measures based on accounting numbers must be objective and precise. Do you agree? Explain.
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> Refer to the information in Problem 12-49 for Lilac Group. Required Recommend a corporate cost allocation system that would improve the performance measurement system used for the two divisions and would address any issues you may have raised in Problem
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> Give two reasons why dividing production cost variances into price and efficiency variances is useful for management control.
> Burt Management Consultants (BMC) is a multinational consulting group organized geographically. In the U.S. Division, the managing partner for sales (MPS) is responsible for client acquisition. The MPS negotiates project scopes and budgets with the clien
> The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $50,000 of new equipment each year and wants to begin a fu
> Following several years of tight budgets, administrators at the University of California, Davis, looked for ways “to do more with less.” Janet Hamilton, vice chancellor of administration, researched books and articles,
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> I thought the Internet would be an ideal way to distribute our products. We’ve had a lot of success with our direct sales, but now we can reach a much larger audience. The baskets we make and sell appeal to people everywhere. I thought
> Keewee Company manufactures a single product for the military. Keewee Company had steady work, but it only had a return on investment of 6 percent. The CEO of Keewee Company did a test flight of Keewee’s product and subsequently had a heart attack and di
> Fargo Industries manufactures and sells snowmobiles. The company has eight business units strategically located near the major markets, each with a sales force and two to four manufacturing plants. These business units operate as autonomous profit center
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> Refer to the data in Exercise 15-22. PSC management has disallowed any change in transfer prices for special orders. Required a. Does PSC want to accept this order? b. Will the Assembly Division manager be willing to accept this order? c. Will the Packag
> Philadelphia Supply Corporation (PSC) produces and distributes various products for the hospitality industry. It is organized in two divisions: Assembly and Packaging. The managers of both divisions are evaluated and compensated based on divisional incom
> Pick an organization you know, such as a school, a local firm, a business, an entertainment business, a sports team, and so on. Identify an example of when a favorable cost variance (actual cost relative to a budget) is not good news for the performance
> Post Parts manufactures components used in audio and video systems. The year just ended was Post’s first year of operations and it is preparing financial statements. The immediate issue facing Post is the treatment of the direct labor costs. Post set a s
> Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Volte never has any work-in-process inventories and began the year with no finished goods inventory. Required a. What w
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> The director of marketing for Marbud Hardware is responsible for, among other things, identifying new geographic regions for the company to enter. As part of the company’s zero-based budgeting process, the director submitted the followi
> Avery Equipment Rental is a regional firm servicing agricultural and construction clients in the northern plains states. The CFO of Avery is preparing next quarter’s budget and has two forecasts for sales in the Western Branch. The market research group
> Refer to the information in Exercise 13-47. For November, Lambie Custodial Services has budgeted profit of $1,620 based on 50 commercial clients. All information about unit costs for cleaners and supplies, about fixed monthly costs, and about hourly clea
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> Commonly in many organizations, including corporations, universities, and government agencies, when more than one employee from the organization is having a business meal paid by the organization, the most senior person (in terms of authority, not age) p
> What are the advantages and disadvantages of starting the budgeting process early in the year versus later in the year prior to the budget year?
> One of the authors of this book has a favorite sandwich shop where one person makes the sandwich and another person rings up the sale and takes the customer’s cash. At first, this author thought that having two people involved had something to do with hi
> Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The company’s Payroll Department supports its two divisions, Naval and Private. The Naval division has contracts with the Department of Defense and
> All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: The remaining 2 percent is not collected and is writt
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> What is the link between flexible budgeting and management control?
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> Consider the Business Application, “Centralizing as a Cost-Cutting Approach.” Required What best describes the benefits that the companies cited that chose not to centralize likely hoped to receive by keeping certain s
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> Westphalia Corporation produces audio equipment for home, office, and vehicles. The production manager (PM) and marketing manager (MM) are both are paid a flat salary and are eligible for a bonus. The bonus is equal to 2 percent of company profit that is
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> Write a memo to Megan Okoye outlining how you would recommend measuring “correct orders” for Silo Coffee and Tea. Be sure to discuss the advantages and disadvantages of your proposed measure.
> What is the advantage of preparing the flexible budget? The period is over and the actual results are known. Is this just extra work for the staff?
> Trombly Fabrication has three production facilities located in the state, each producing the same basic mix of products. Facility 1 was the original plant and the only one for several years. Facilities 2 and 3 were added recently to handle the increased
> Ternes Manufacturing produces metal products primarily used in the construction industry. The three main inputs in production are materials (metal), labor, and overhead. Data for the previous three reporting periods follow: Required a. Compute the total
> Cahalan is a network of clinics performing laser surgery for vision correction. Each clinic tracks the number of patients treated and the number of professional-hours spent on the laser patient procedure. Consultations, follow-up visits, and so on are tr
> Canfield Transition Centers is a not-for-profit organization to teach new technical skills to individuals looking to change careers. Canfield operates four campuses (Construction, Electrical, Plumbing, and Carpentry). Because the programs require all-day
> The controller’s staff at McNichols Lubricants is responsible for preparing quarterly performance reports. One report evaluates quarter-to-quarter improvement in partial productivity of the two main inputs in the production process: bas
> Top management at Reisener Corporation are looking to improve productivity in corporate staff functions. One area targeted for the initiative is the Human Resources (HR) department. The following data were collected for three relatively routine actions f
> RST Airlines operates call centers for customer service in four locations: Minneapolis, Phoenix, Boise, and Singapore. Although all four call centers can handle any inquiries, calls from elite customers are generally routed to the Boise center, and inter
> For each category of functional measures listed in Exhibit 18.9, add one additional specific measurement that is not already listed.
> Gordon Industries has the following mission statement: To be the low-cost leader in package delivery services. Gordon’s CEO tells you that the financial staff has developed the following initial balanced scorecard: Required Comment on t
> Romeyn Food Markets has decided to adopt a balanced scorecard to monitor performance. The company’s strategy is to be a provider of premium foods, sourced from local farms and nationally known organic suppliers. The initial scorecard re
> What is the advantage of recognizing materials price variances at the time of purchase rather than at the time of use?
> What are the advantages of the contribution margin format based on variable costing compared to the traditional format based on full absorption costing?
> What would it take to implement your ideas/plans to move forward with these goals?
> Develop a plan to address key stakeholder concerns from each perspective. Can you find a pathway in the stakeholder analysis to build support for your key goals?
> List your personal goals. Which stakeholders are supportive of these goals? Which are likely to try to block these goals?
> Are efforts such as the MBA oath (discussed in this chapter) reflections of a different approach that Gen Z will bring to the business environment, compared with prior generations?
> As this cohort expands in the work force, do you expect to see different sets of business ethics and workplace culture take hold? Please explain.
> As you consider your career after graduation, which control-and-reward system would you find most motivating? Is this different from the controls used at some jobs you have had in the past? How do you think you would perform in a holacracy such as Zappos
> Have you been in school or work situations in which your values did not align with those of your peers or colleagues? How did you handle the situation? Are there certain values or norms important enough for you to consider as you look for a new job?
> Review Exhibit 11.11 and circle the organizational characteristics you find appealing. Cross out those factors you think you would not like.
> Identify at least three activities you could do this week to get started. For example, you could choose to work with international students on group projects in class. Perhaps invite students with diverse backgrounds to lunch. What questions could you as
> Identify your weakest area and make a list of activities that will help you improve your capital in that area.
> Why is it that PESTEL factors can have such a strong impact on the future of a business? Do you support legislation such as that passed in New York (and elsewhere), or do you think it has more to do with protecting vested interests such as the hotel indu
> As a baseline of your current position, list your strengths and weaknesses for each component.
> Now compare your actual career-related network using a site such as LinkedIn. Are any of your connections linked together? With how many alumni from your university are you linked? These alumni can provide a source of “weak ties” that may help you get a
> Create a list of up to 12 people at your university with whom you regularly communicate (in person, electronically, or both). Draw your network (place names or initials next to each node), and connect every node where people you communicate with also tal
> Let’s consider dynamics—has your level of diversification changed over time (say, over the last five years)? Looking toward the future, do you expect your level of diversification to change as you complete your degree? Why or why not?
> Do you need to make adjustments to your portfolio of activities? Explain the reasons for your answer.
> Using Exhibit 8.8 as a guide, list each of your major activity areas. Think of each of these as a business. (If you are literally “all work and no play,” you are a single-business type of personal diversification.) Instead of revenues, estimate the perce
> Explain how you would apply the strategic management framework to enhance your startup’s chances to gain and sustain a competitive advantage.
> Do you see higher education as a benefit or detriment to becoming a successful entrepreneur? Why?
